Consumer credit disputes: what counts as an 'unfair relationship'

Section 140A of the Consumer Credit Act 1974 lets a court unwind or adjust a credit agreement if the relationship between lender and borrower was "unfair" — a broader test than proving the lender broke a specific rule.

What courts look at

• The terms of the agreement itself — were they reasonable, and clearly explained?
• How the lender used or enforced those terms in practice
• Anything else the lender did or didn't do — including how the credit was sold, and whether affordability was properly checked

Common grounds for a claim

Undisclosed or excessive commission paid to a broker or dealer, inadequate affordability checks before lending, and aggressive or unclear terms have all featured in successful unfair relationship claims — particularly in car finance and high-cost credit cases.

Building the case

Start by requesting a copy of your credit agreement and a full transaction history from the lender — you're entitled to ask for this. Compare what you were told at the point of sale against what the paperwork actually says, and note anywhere they don't match.

The test looks at the relationship as a whole, not one isolated clause — so a pattern of small issues (poor disclosure, pressured sales, unclear terms) can add up to a claim even if no single one would on its own.

This is general information, not legal advice.